Solana Foundation Breaks Silence, Refutes SEC’s Classification of SOL as Security

The Solana Foundation has finally broken its silence with respect to the recent classification of Solana (SOL) alongside other cryptocurrencies as an investment contract by the United States Securities and Exchange Commission (SEC). In the recent address the firm shared on Twitter, it said it disagrees with the market regulator.

The Solana Foundation said it “welcomes the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the digital assets space.”

The foundation blew its own trumpet that it has the strongest builder community in the broader digital currency ecosystem with the commitment to build exceptional projects and products in the broader industry. While its message is designed to reassure its community, the Solana Foundation highlighted its core mission of supporting “those building for the long-haul to continue to create the best blockchain for a decentralized future.”

The Solana Foundation disagrees with the characterization of SOL as a security. We welcome the continued engagement of policymakers as constructive partners on regulation to achieve legal clarity on these issues for the thousands of entrepreneurs across the U.S. building in the…

— Solana Foundation (@SolanaFndn) June 10, 2023

The SEC named SOL as a security alongside Cardano (ADA), Polygon (MATIC) and Filecoin (FIL) amongst others when it sued the duo of Binance and Coinbase exchanges last week. While there is no apparent lawsuit against Solana Foundation for now, the classification has the tendencies to negatively shift the trust investors have in the SOL token.

Solana Foundation Shared its Reassurances Late

Despite the message that was targeted at pacifying its community, the Solana Foundation notably made the move to reassure its community fairly late. While the probe into why it waited about a week to address its community is not far-fetched, the impact of the SEC crackdown is already being felt.

As reported earlier by Coingape, Robinhood Markets Inc has announced it will be withdrawing its support for Solana, Cardano and Polygon by the end of this month. The impact of this move has contributed to the sustained bearish trend of SOL and majority of the altcoins in the market today.

There is a fear that more exchanges may be delisting SOL and the affected digital currencies until the securities status of these assets is redefined. At the time of writing, SOL is changing hands at a price of $15.37, down 30.3% in the trailing 7-day period.